Gold May Be Near the Bottom

Many technical signs suggest that the price of gold is about to hit the floor, but it's got so much downward momentum it could go straight to the basement.

Gold is getting dusted. After rallying for more than a decade, prices have fallen through a trap door into bear market territory. While this label only tells us what has happened and not what is coming, it does underscore the prevailing trend—down.

The question is whether prices are low enough to suggest a bottom is in. Given the body of technical evidence from trend to momentum, the answer is that it could be. The problem is that,...